Cashback mortgages

Cashback mortgages are in the news a lot these days. You’ll hear them advertised on the radio and TV, and no doubt the ads have popped up on your socials too. 

What exactly are cashback mortgages, and are they any good? Any product that gives you cash back must be worth a look at, and what’s wrong with a bit of money in your pocket?

At LHK Mortgages, we pride ourselves on giving excellent mortgage advice and providing excellent mortgage products too.

Let’s take a look at cashback mortgages and see if and how they might suit your mortgage needs.

A cashback mortgage is when a lender offers you cash back on your mortgage.

The cashback mortgage is usually either a fixed amount or, in some cases, a percentage of the amount you are drawing down in the mortgage.

A mortgage provider could offer you €2,500 in cash when you draw down the mortgage, and it is yours to do whatever you want with.

Other mortgage lenders may offer a percentage in cashback, such as 2% of the total mortgage amount, as in 2% of €350,000 is €7,000 into your account.

Different mortgage providers offer their cashback mortgages in a number of ways.

Well, a cashback mortgage can work in a variety of ways. Some mortgage lenders add further incentives to take the cash over time, while others give you the cash all in one go.

The cashback at drawdown is a very popular offering, and it is exactly as you imagine: you get the agreed cashback paid into your account on the day you draw down the mortgage.

For first-time buyers, this is a great option, as the cashback can help with those unexpected costs, such as solicitor’s fees or putting in a new kitchen or bathroom.

A deferred cashback option puts some of the money into your pocket today, and another lump sum is paid at a later date, usually on the 5th anniversary of drawing down the mortgage.

Offered as a loyalty incentive, the deferred cashback is seen as a handy way to save a bit of money. You can then spend it on the house when you are thinking of renovations or adding an extra bedroom in the future.

The monthly cashback option is taken up by those homeowners who like a bit of extra cash in their current account each month and is offered as a percentage of the monthly repayment amount, such as 2% of the sum due.

Providers offer the monthly cashback as a loyalty incentive. They see it as a way of keeping your other banking business with them, as they will only pay into an account at the same bank.

If you are considering a cashback mortgage, you should talk to a qualified mortgage adviser to find the mortgage package that suits you best.

One obvious benefit of a cashback mortgage is the money in your pocket, and who doesn’t like a bit of cash when making your mortgage payments?

Depending on which cashback package you opt for, you could:

Cashback mortgages can offer many benefits, but you need to decide if taking the money is right for you now or in the future.

The drawbacks of a cashback mortgage may not always be obvious, and people often only see them a year or so later, after agreeing to the package.

Common drawbacks to a cashback mortgage:

There are drawbacks and benefits to every mortgage package in Ireland, and you should talk with a trusted mortgage advisor before agreeing to a deal.

No, you will not pay tax on your cashback mortgage payments in Ireland. In essence, you are getting your own money back, so there is no tax liability to face.

You can use the tax-free money to do what you like, and if you can afford it, you could have nice holiday to get away from it all for a bit.

A cashback mortgage could be for you, but only if it suits your needs and the benefits outweigh the drawbacks.

Many first-time buyers use the cashback payment to clear debts from the house purchase, such as redecorating or paying the moving costs.

If you are thinking of switching a mortgage, you might find the cashback on offer from the other provider sweetens the deal and makes the switch worth your while.

As we always say, talk to a mortgage advisor and see if you can benefit from taking out a cashback mortgage.

Contact LHK Mortgages today for all the advice you need when looking for a mortgage in 2026.

LHK Mortgages is a long-established, trustworthy financial services company that can help secure mortgage finance. We work with a range of lenders, and our mortgage specialists are experts in all areas of financing, especially the difficult ones.

Call LHK Mortgages today or fill in the contact form to arrange a no-obligation consultation with one of our dedicated mortgage advisors.